01—Abstract
Summary
Summary of the 10-K filed September 1, 2017. Cited figures are marked; the original filing is the authoritative source.
For the fiscal year ended July 31, 2017, Intuit Inc. reported a total net revenue of $5.2 billiona, representing a 10% increase compared to the previous year.
The company experienced robust growth in its Small Business segment, driven by a 30%b increase in its Online Ecosystem revenue, and a notable 9% increase in its Consumer Tax segment, attributed to unit growth and a favorable product mix. The ProConnect segment saw a modest 2% revenue increase. This growth translated into a 20% increase in net income from continuing operations and a 22% rise in diluted earnings per share.
Intuit continues its strategic shift towards connected services, which generated 73% of its total revenue in fiscal 2017, indicating a successful transition from traditional desktop software. The company maintained a strong financial position, with cash, cash equivalents, and investments totaling $777 millionc at the end of the fiscal year.
Intuit also actively returned capital to shareholders through share repurchases and dividends, with $1.5 billiond remaining under its authorized repurchase program. Investments in research and development remained significant at 19% of total net revenue, underscoring the company's commitment to innovation in a rapidly evolving technological landscape.
02—Key points
Key Highlights
- Total net revenue increased by 10% to $5.2 billion for the fiscal year ended July 31, 2017.
- The Small Business segment revenue grew by 13%, with a 30% increase in the Online Ecosystem driving this growth.
- Consumer Tax segment revenue increased by 9%, supported by unit growth and a shift towards higher-end products.
- Net income from continuing operations rose by 20% to $971 million.
- Diluted earnings per share from continuing operations increased by 22% to $3.72.
- Connected services represented 73% of total revenue, highlighting Intuit's focus on its ecosystem.
- The company reported $777 million in cash, cash equivalents, and investments at year-end, with significant capital available for repurchases and dividends.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2017, Intuit kept $0.19.
- Revenue$5.18B100.0%
- Cost of revenue−$120.0M2.3%
- Gross profit$5.06B97.7%
- Operating costs−$3.64B70.3%
- Operating income$1.42B27.4%
- Interest, other & tax−$433.0M8.4%
- Net income$985.0M19.0%
Where FY2017 revenue went
$5.18B- Other operating costs: $2.64B, 51% of revenue
- R&D: $998.0M, 19% of revenue
- Net income: $985.0M, 19% of revenue
- Cost of revenue: $120.0M, 2.3% of revenue
- Interest, other & tax: $433.0M, 8.4% of revenue
Kept 19% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2017filed September 1, 2017Financial Statements
FY2017 against FY2016
| Line item | FY2017FY2016 | Change |
|---|---|---|
| Revenue | $5.18B$4.69B | +10.3% |
| Cost of Revenue | $120.00M$131.00M | −8.4% |
| Gross Profit | $5.06B$4.56B | +10.8% |
| R&D Expenses | $998.00M$881.00M | +13.3% |
| Operating Expenses | $3.78B$3.45B | +9.4% |
| Operating Income | $1.42B$1.24B | +14.2% |
| Interest Expense | $31.00M$35.00M | −11.4% |
| Net Income | $985.00M$979.00M | +0.6% |
| EPS (Basic) | $3.83$3.73 | +2.7% |
| EPS (Diluted) | $3.78$3.69 | +2.4% |
| Shares Outstanding (Basic) | 257.00M262.00M | −1.9% |
| Shares Outstanding (Diluted) | 261.00M265.00M | −1.5% |
05—Questions
Frequently Asked Questions
What was Intuit's revenue performance in fiscal year 2017?
Intuit reported total net revenue of $5.2 billion for the fiscal year ended July 31, 2017, a 10% increase from the prior year. This growth was driven by strong performance in the Small Business segment and a solid increase in the Consumer Tax segment.
How did Intuit's different business segments perform?
The Small Business segment grew 13%, largely due to a 30% increase in its Online Ecosystem revenue. The Consumer Tax segment saw a 9% revenue increase, driven by unit growth and a shift towards higher-priced products. The ProConnect segment experienced a more modest 2% revenue growth.
What is Intuit's strategy regarding connected services?
Intuit is strategically shifting towards connected services, which accounted for 73% of its total revenue in fiscal 2017. This indicates a successful transition from traditional desktop software to an integrated ecosystem of online and mobile financial management solutions.
How did Intuit manage its capital and return value to shareholders?
Intuit ended fiscal year 2017 with $777 million in cash, cash equivalents, and investments. The company actively returned capital to shareholders through share repurchases and dividends, with approximately $1.5 billion remaining authorized for share repurchases, demonstrating a commitment to shareholder returns.
06—Continue